Stocks for C3.ai Sink to Record Lows over Several Years. Worth a Blind Investment?

C3.ai Shares Fall to Multi-Year Low - Is a Purchase Worth Considering?

In a surprising turn of events, C3.ai, the large tech company known for its integration of AI and the Internet of Things, is facing a significant revenue shortfall in its first-quarter earnings for fiscal 2026. The preliminary estimates indicate revenue of between $70.2 million and $70.4 million, significantly lower than the forecasted range of $100 million to $109 million in May.

This disappointing performance has been attributed to a variety of factors, including a significant shortfall and a nearly 20% decrease year over year. Part of this shortfall is attributed to C3.ai's reorganization, which may have caused disruptions in the sales process.

The role of the CEO at C3.ai appears to be uniquely important to the company's growth, introducing a level of risk for investors. This was evident when founder Tom Siebel stepped down due to health issues and became Executive Chairman, and Stephen Ehikian was appointed CEO on September 1, 2025.

The new CEO, Ehikian, with his prior executive experience, aims to steer the company toward recovery. However, the near-term impact on sales remains uncertain amid ongoing operational difficulties. The CEO change may have caused significant disruptions in the sales process, as C3.ai's sales are heavily dependent on the involvement of founder Tom Siebel in the sales process.

Tom Siebel himself has stated that his health issues have prevented him from taking a more active role in the sales process. This transition, coupled with the lack of the same selling skills or relationships as Siebel, may continue to pose challenges for C3.ai in its quest for growth.

The preliminary Q1 guidance and the explanation for the deep reduction in sales offer no reassurance for investors. In fact, the performance is described as "completely unacceptable" by founder Tom Siebel. The stock of C3.ai is considered a potentially more volatile investment due to the CEO's significant effect on sales.

Moreover, C3.ai's lack of profitability and question marks around its financials make it a risky stock. The company's being an integral part of the sales process by its CEO is a big red flag for investors, further increasing the risk associated with this tech company.

In conclusion, while C3.ai may seem like a cheap stock to buy, it's looking more and more like a value trap. Investors should approach this stock with caution and carefully consider the risks involved before making any investment decisions.